Introduction

The directors present the strategic report for the year ended 31 March 2025.

The statutory results for the Company are to be found on page 9. This result fully reflects the net margin of the 2024 harvest and costs of establishment of the 2025 harvest.

Strategic Context

We have completed the first year of a five year strategic plan to evolve and reposition the company by 2030 as a result of the structural changes affecting agriculture and UK farm businesses.  

The improved financial results demonstrate the progress of this plan, which is at the early stages of implementation and involves de-risking the core farm management business alongside an increase in the income from our business solutions consultancy activities and other diversified income.

This repositioning of the business has seen some one-off costs associated with the ceasing of a number of unprofitable and unrewarding activities and tenancies and the directors are satisfied with the results albeit would have preferred to see a profit.

In particular, we are pleased with the performance of the Business Solutions division, which has seen revenue growth by giving strategic advice to Farmers wishing to grow and adapt to the difficult financial situations and changing regulatory and taxation environment.  This has offset the headwinds from a difficult farming year, as per our strategy.  The company's scale allows us to optimise the placing of resources across our portfolio of managed and tenanted estates to control fixed costs and return on capital invested.

The directors are satisfied that cash has increased by 40% to £1.3m at the balance sheet date, which will fund additional growth and reduce borrowing costs.

Looking ahead, the directors will continue with the strategic plan of reprofiling the farm management portfolio, building on the company's strengths with a scale that enjoys lower growing costs with higher sales values resulting in superior margins for ourselves and our clients.

The company continues to make substantial contributions to its defined benefit pension scheme, which is closed to new entrants, within a structured deficit reduction plan.

Business Review for Financial Year 2025

Our teams have worked with determination and focus to minimise the Company’s loss during a year that posed substantial sector-wide challenges. The Directors are encouraged by the progress made in technical and structural areas, which has played a key role in containing losses and laying a strong foundation for the future. Across all areas, our efforts have been centred on enhancing efficiency, reducing waste, and safeguarding the environment.

The 2024 harvest produced varied outcomes. While excessive rainfall and flooding affected arable yields in Lincolnshire and parts of East Anglia, other parts of the business delivered average to above-average yields, helping to balance the overall result.

Grain market prices remained generally suppressed, with some falling below production cost. However, the Company’s marketing strategy proved effective, our harvest pool outperformed the market by £8 per tonne, offering some welcome resilience.

The Company continues to make steady progress under its five-year strategic plan, which covers both financial goals and broader development. Leadership roles have been refined to improve operational focus, and a succession plan is now in place to ensure continuity. The leadership team is also placing greater emphasis on enhancing the Company’s profile both locally and nationally.

Our commitment to forward-looking, sustainable solutions remains central to everything we do. We have increased the area of high-quality land under our management while reducing activity in lower-margin regions, ensuring resources are allocated effectively.

Our Business Solutions consultancy division has continued its strong upward trajectory. A new office in Kent and the addition of two new team members have expanded our professional services capacity. This growth reflects increasing demand for our integrated and multi-disciplinary expertise in addressing agricultural challenges.

In response to the growing impact of climate change, we are rolling out a proactive soil management strategy to improve structure and resilience, ensuring our operations remain both productive and environmentally conscious.

The increase in bond rates has positively impacted the FRS102 accounting valuation of the Company’s defined benefit pension scheme, reducing the deficit from £2.079 million to £1.716 million. The Triennial valuation as of 31st December 2024 is currently ongoing.

Employee Owned & Managed

As an Employee-Owned business, Sentry offers its team a meaningful opportunity to shape and share in the success of the Company. Since launching our tax-efficient Share Incentive Plan (SIP) on 1st April 2021, employee uptake has been encouraging and continues to grow. This structure fosters a culture of engagement, responsibility, and shared success.

The Management Team remains actively engaged in seeking new farming opportunities, which are presenting themselves at an encouraging rate. Each is carefully assessed for strategic fit. The Directors remain strongly optimistic about the future growth prospects of the Company.

Principal risks and uncertainties

The Directors are committed to limiting the Company’s exposure to risk while recognising the inherent volatility of the sector. Among the primary risks identified are credit, liquidity, and interest rate fluctuations. Climate change and related regulatory changes present both challenges and potential advantages. On the ground, our shift to more robust, soil-friendly systems with a lower carbon footprint is already underway.

Political changes will continue to influence UK agriculture, but we see scope for strategic adaptation that will help the Company navigate and capitalise on these evolving conditions.

The Directors and senior management regularly assess foreseeable uncertainties and take proactive steps to mitigate risks while identifying and pursuing new opportunities in an increasingly dynamic market.

Financial risk - The Company employs established financial controls to mitigate risk. These include preparing profit forecasts, closely monitoring actual performance, and ensuring access to sufficient financial facilities.

Price Risk - Commodity price volatility remains a key risk. Strong relationships with key customers provide valuable market insight, enabling swift responses to market changes and helping to minimise exposure.

Credit risk - The Company maintains longstanding relationships with many clients and conducts appropriate checks for all new trading partners. This approach helps to manage and reduce credit risk effectively.

Liquidity risk - Cash flow is monitored daily, supported by a company-wide monthly cash reporting system, ensuring continued control and adaptability.

The Directors believe that the inclusion of specific key performance indicators is not essential for understanding the Company’s overall development, performance, or financial position.

Employees

The Board extends its sincere thanks to all employees for their dedication and resilience throughout a challenging year. From on-the-ground operations to administrative and advisory support, the efforts of our team have been instrumental in maintaining progress and positioning the Company for a stronger year ahead.

This report was approved by the board and signed on its behalf.

The directors present their annual report and financial statements for the year ended 31 March 2025.

The Company continues to farm on tenanted land, provide contract and management service for clients farms and to focus on agricultural, and associated rural and environment service.

The loss for the year, after taxation, amounted to £64,948 (2024: loss of £205,210).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Charitable contributions

During the year the Company made payments of £5,303 (2024 - £5,757) in respect of charitable donations.

The directors do not expect any significant changes to the structure of the business in the coming years. The management team in place continue to look to explore forthcoming opportunities created by market changes, and intend to develop these for the benefit of the Company and our clients. The directors hold a very positive outlook for future growth of the Company.

Financial risk, price risk, credit risk and liquidity risk management have been included within the strategic report.

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

· so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

· the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Sentry Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- enquiring of management, including obtaining and reviewing supporting documentation concerning the company's policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

- discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud; and

- obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the companies. The key laws and regulations we considered in this context included the Companies Act 2006, tax legislation, and laws specifically applicable to sector in which the company operates.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the Financial Statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

- enquiring of management, concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance, reviewing internal controls/systems notes and reviewing correspondence with HMRC; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

- Assessing compliance with relevant laws and regulations, including Equality Act 2010, Employers' Liability Act 1969 and Health & Safety at Work Act 1974, to which we found no material shortfalls or had any concerns.

- Assessing compliance with requirements as set out by Department for Environment, Food & Rural Affairs, Rural Payments Agency and Environment Agency, to which we had no concerns.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 34 form part of these financial statements.

The notes on pages 15 to 34 form part of these financial statements.

The notes on pages 15 to 34 form part of these financial statements.

The notes on pages 15 to 34 form part of these financial statements.

The notes on pages 15 to 34 form part of these financial statements.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Note 10 for the carrying amount of the tangible assets, and Note 3.4 for the depreciation rates.

Sentry Limited continues to have obligations to pay into the Defined benefit pension scheme which closed to employees on 31 December 2009. The cost of these benefits and the present value of the obligation depend on a number of factors, including: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

Impairment of debtors

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See Note 15 for the net carrying amount of the debtors.

Sentry Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7a Hill View Business Park, Old Ipswich Road, Claydon, IPSWICH, Suffolk, IP6 0AJ. The registered number of the company is 03830499.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

Consolidated financial statements have not been prepared under sections 402 and 405 of Companies Act 2006.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The Company continues to invest in farming machinery through purchase, hire purchase or contract hire agreements. The day-to-day trading is supported via its own working capital or by the use of a bank overdraft facility, which is reviewed and renewed annually. The Directors have a strong expectation that the Company has more than adequate resources to continue in operational existence for the foreseeable future.

The Company’s bank balance at the year end was £1,319,684 (2024: £763,034).

The Directors take advice from an experienced external Company to minimise exposure to volatile crop prices. Fuel sensitivity has been undertaken on a range of fuel prices in order to assess the impact to the Company’s bottom line and such risk has been carefully managed with fuel escalators to contracting work where they were not already in place.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of goods

Revenue from the sale of arable crops are recognised in the period in which the relevant goods are harvested.

Rendering of services

Revenue from contract farming service operations are recognised in the period in which the services are provided to the customer.

Revenue from contracting farming service divisible surpluses are recognised in the period in which the relevant harvest falls. Where this has not been realised by the year end the amounts receivable are calculated on individual financial projections using known data, market information and industry experience.

Revenue from advisory services are recognised in the period in which the services are provided to the customer.

Rent receivable

Revenue in respect of rent receivable and cropping licenses is recognised in line with the harvest period to which it relates.

Basic payment and environmental schemes

These are government subsidies and are recognised inline with the government grants accounting policy.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investments in partnerships are included at cost on the balance sheet and any income and profits received from the investment are included in the Income Statement as they occur.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Fuel and wearing metal stock are held at cost.

Growing crops in stock as at 31 March each year incorporate two elements. Raw material inputs are included at the weighted average cost whilst the value of cultivations is prepared using rates laid down by the Central Association of Agricultural Valuers to cover the cost of labour and machinery used in the direct crop applications.

Crops in store are stated, as per Section 34 of FRS 102, at their fair value less costs to sell to align the profit recognition in line with the harvest year. Methodology applied in the valuation references the market price achieved for each crop in store, as it is the Company aim to sell its product ahead of time under contract.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit or loss for the year. Taxable profit or loss differs from net profit or loss as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s position for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Pension

Defined contribution pension plan

The Company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Income Statement when they fall due.

Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension plan

A defined benefit plan defines the pension benefit that the employee will receive on retirement,usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The scheme closed to future accrual on 31 December 2009 and all accrued pension benefits at the date of closure are increased each year in line with inflation.

The liability recognised in the Statement of Financial Position in respect of the Defined Benefit Plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income.

The cost of the Defined Benefit Plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as an "Other finance expense".

Sentry Limited continues to have obligations to pay into the Defined benefit pension scheme which closed to employees on 31 December 2009. The cost of these benefits and the present value of the obligation depend on a number of factors, including: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

Included in the obligation value for the period ended 31 March 2024 is past service costs relating to the impact of GMP equalisation as expensed in the year to 30 April 2019. The Actuary estimated the GMP equalisation allowance having regard to scheme specific matters such as the benefit structure and liability profile. Further details of the adjustment are included in note 22.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

All turnover arose within the United Kingdom.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The total key management personnel compensation (including directors) in the year was £452,955 (2024 - £474,176), including the related national insurance contributions equating to £46,507 (2024 - £44,788).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

The directors' emoluments total £367,865 (2024 - £373,126) which includes £7,515 (2024 - £7,091) of benefits in kind.

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount credited to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Factors that may affect future tax charges:

The Company has estimated losses of £2,318,759 (2024 - £1,587,856) available for carry forward against future trading profits.

The net book value of assets held under finance leases or hire purchase contracts at the year end, included above, are as follows:

Details of the company's subsidiaries at 31 March 2025 are as follows:

Details of the company's associates at 31 March 2025 are as follows:

All of the above subsidiaries and associated companies have the same registered office of the Company as stated in note 1.

£660 provision for doubtful debts (2024: £1,680) is included within trade debtors.

The bank loans were secured by a debenture.

Hire purchase and finance lease agreements are secured on the assets concerned.

Hire purchase and finance lease agreements are secured on the assets concerned.

Bank loans were secured by a debenture.

Hire purchase and finance lease agreements are secured on the assets concerned.

Bank loans are unsecured.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

All shares rank pari passu.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The Company contributes to a defined benefit scheme in the UK, the Sentry Farms Pension Scheme. The assets of the scheme are held separately from those of the Company. The scheme is a Career Average Revalued Earning defined benefit pension scheme. Pension benefits are built up each year, linked to the members salaries in that year. The benefits are then increased each year in line with inflation. Some members who joined the scheme prior to 1 July 2006 also have final salary defined benefits for service accrued up to 31 October 2007 which are linked to the members' final pensionable salary at their date of leaving.

The scheme closed to future accrual on 31 December 2009 and all accrued pension benefits at the date of closure are increased each year in line with inflation.

Following completion of the 31 December 2021 triennial valuation carried out by First Actuarial plc, it was agreed that the Company would continue to pay £186,000 pa in monthly installments until 30 September 2029. Following the formal agreement of the increase in contributions, the Company would begin to pay £186,000 pa in monthly installments from 1 January 2023. The contribution level is expected to remain at this level for six years and nine months.

On 26 October 2018, the High Court issued a judgement involving the Lloyds Banking Group defined benefit pension schemes. The judgement concluded that the schemes should equalise pension benefits for men and women in relation to guaranteed minimum pension ('GMP') benefits. In addition, a ruling by the High Court, issued on 20 November 2020, means the Trustees of defined benefit schemes must also now revisit and equalise GMP for historic transfers where they were not equalised. These judgements have implications for many defined benefit schemes, including the Sentry Limited defined benefit pension scheme.

Based on advice from the Company's actuarial advisors, the balance recognised in the year to 30 April 2019 reflected their best estimate of the effect on the Company's reported pension liabilities and it is not considered the more recent 2020 case would materially impact this figure.

The cumulative amount of actuarial gains and losses recognised in the Statement of Comprehensive Income was £745,000 (2024 - £56,000).

Assumed life expectations on retirement at age 65:

Amounts recognised in the profit and loss account

Amounts taken to other comprehensive income

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Movements in the present value of defined benefit obligations

The defined benefit obligations arise from plans which are wholly or partly funded.

Movements in the fair value of plan assets

The actual return on plan assets was £472,000 (2024 - £60,000).

Fair value of plan assets at the reporting period end

The share premium account represents the fair value of shares acquired less the nominal value of the shares. Any transaction costs associated with the issuing of shares are deducted from the share premium.

The capital redemption reserve represents the nominal value of own shares purchased. Any transaction costs associated with the purchase of own shares are deducted from the capital redemption reserve.

The profit and loss account represents the Company's accumulated profits which are available for distribution to members.

The Company is a partner of Frinton Farm Partners, Great Holland Hall, Church Lane, Frinton-on-Sea, Essex and is jointly and severally liable with the other partners for the liability of the partnership. There are no contingent liabilities at the year end (2024 - £NIL).

At the year end £224,895 (2024: £232,072) a secured loan to Eastern Seed Growers Ltd, an associated company, remained outstanding and has been included within other debtors within Note 15. Interest is charged at 7% per annum. The first repayment was paid on 31 March 2024 and will be fully repaid on 31 March 2036.

During the year sales of £193,661 (2024: £77,328) and purchases of £108,465 (2024: £12,681) were made to associated companies. At the year end there was a total trade debtor balance of £21,102 (2024: £344) and trade creditor balance of £4,687 (2024: £Nil) with these companies.

During the year sales of £701,296 (2024: £147,776) and purchases of £325,101 (2024: £2,735) were made to companies under significant control of a director of Sentry Limited.

There is no one controlling party.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: